Why bankers want key lending rate kept at 10.5 percent
Bankers want the benchmark lending rate maintained at 10.5 percent in the upcoming Monetary Policy Committee (MPC) review next week,
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NCBA
Bankers caught in the domino effect of the falling shilling
Kenyan banks find themselves in a tough spot, akin to a deer ensnared in the piercing glow of headlights. They are burdened by substantial amounts of government debt and defaulted government supplier debt. To compound matters, their ventures into foreign exchange have become a costly gamble, with a staggering 23.8 percent surge in expenses triggered by the falling Kenyan shilling.. In psychology, it is recognized that, like animals, humans tend to freeze in response to acute stress, an instinct aimed at enhancing risk assessment and decision-making abilities. However, this instinct can lead to paralysis, leaving individuals unsure of how to proceed. Kenyan lenders are facing…
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Regional units drive NCBA’s net profit up to Sh14.6 billion
Regional lender NCBA Group has reported a profit after tax of Kes14.6 billion in its third-quarter results ending on September
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NCBA enters deposit race with cash prize offers
NCBA Bank has kicked off a three-month deposit mobilization campaign named “Deposit & Delight,” offering cash rewards to savers. This initiative provides Kenyan customers with the opportunity to win up to Kes1 million for deposits as low as Kes5,000. The campaign underscores the bank’s commitment to expanding its retail banking business to support its key strategic priority of customer growth. Traditionally, banks offer prizes to encourage deposit mobilization, and as lenders grapple with the growing cost of fund deposit mobilization, more campaigns are likely to be launched. However, with the rise of digital banking, competition from unit trusts, and awareness of government interest rates, it…
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Agriculture and services set to lead Kenya’s 6% 2024 growth — NCBA
A rebound in agriculture, driven by favorable weather conditions, along with increased activity in the services sector, is expected to anchor Kenya’s growth next year. NCBA Managing Director and CEO John Gachora has identified these two sectors as the drivers of the country’s GDP growth, which could hit 6 percent in 2024. “Agricultural output is likely to expand by 5 percent in 2024, according to our internal projections,” Mr Gachora stated during NCBA’s Economic Forum held under the theme “Macroeconomic Outlook; Divergence Across Economies and Sectors.” On agri-export flows, including coffee, tea and horticultural crops, the lender says they will remain within their long-term-average trend…
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NCBA Leasing shining a path to a greener tomorrow
In a move towards advancing clean energy adoption, NCBA Leasing LLP has introduced a Kes500 million solar financing facility, aimed at accelerating the adoption of solar power across various industries. This Solar Financing Product will empower businesses by offering them a dependable and cost-effective means to invest in solar power systems, thereby removing the financial obstacles that have hindered solar adoption. “As operational costs continue to rise, it is increasingly essential for enterprises to explore alternative power solutions that not only reduce expenditure but are also environmentally friendly,” said NCBA Leasing LLP Deputy Director Robert Marete. The launch of this initiative was celebrated during the
Read MoreWhy NCBA wants to buy insurer AIG Kenya
At the heart of regional lender NCBA’s pursuit to acquire 100 percent ownership of AIG Kenya, lies a set of reasons: robust revenue growth, the seasoned leadership of its management team, and an unwavering commitment to a customer-centric ethos by the insurer. AIG Kenya, an insurance company with deep-rooted customer relationships spanning across Kenya, Uganda, Tanzania, and Rwanda for the past half-century, is the latest target of NCBA Group’s acquisition ambitions. The insurer, which runs underwriting business for corporations, SMEs, and individual clients, has been a strategic minority investment for NCBA for over 18 years, consistently impressing with its steady revenue growth. John Gachora, the…
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NCBA profit up 20 percent to Sh9.3 billion on less provisioning
Lender NCBA’s six-month period ended June has surged 20.3 percent to Kes9.3 billion on higher income and reduced provisioning for bad loans. Provision for bad loans decreased by 21 percent year on year, closing at Kes4.4 billion in the period, reflecting the group’s prudent risk management practices and its ability to navigate challenges. The Group’s revenue grew by 7 percent in the half to Kesh31 billion driven by net interest income growth of 16.3 percent. NCBA disbursed Kes457 billion in digital loans, marking a remarkable 35 percent year-on-year increase. The balance sheet size grew by 9.3 percent to Kes660.3 billion attributable to customer deposits growth of…
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NCBA’s 90th branch opens in Eastleigh
NCBA Bank Kenya has launched its 90th branch in Eastleigh, Nairobi, as it seeks to tap one of the country’s busiest business hubs. The opening of the Eastleigh branch follows the successful opening of the lender’s Kahawa Sukari branch last month. Deputy Director, Retail Banking at NCBA, Jane Nganga said as Kenya’s third largest bank, serving over 60 million customers across the region, the bank needs physical presence to enhance customer experience and offer advisory. Lenders are reversing the branch closures we saw in the recent past due to shift to mobile banking, leveraging back to brick and mortar in the fight for market share
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